On April 26, the specialty pharmaceutical company, Evoke Pharma Inc. (EVOK) rallied by over 118% mid-day. Owing to the news of FDA market exclusivity granted to the company for GIMOTI®, the stock had investors flocking towards it. Thus, at a super active volume of 215.11 million shares, EVOK surged up to a price of $1.40 and closed the session at $0.86.
Inevitably, this huge uptick gave way to corrections in the after-hours making the stock enter the red. Hence, the stock then went on to lose 8.14% to corrections in the after-hours, reaching a value of $0.79 a share.
EVOK’s Market Exclusivity
On Tuesday, the company announced being granted new drug product exclusivity by the U.S. FDA for GIMOTI nasal spray. Therefore, under the Hatch-Waxman Act for protecting products from generic drug competition, EVOK now has exclusive rights for a period of three years from the original date of approval.
Furthermore, the company also has two Orange book-listed patents for the nasal spray which expire in 2029 and 2030. In addition, it also has gender-specific patents in the E.U., Japan, and Mexico ranging till 2032. Other patent applications with dates of 2032, 2037, and 2038 are pending approval.
GIMOTI is a nasal spray formulation of metoclopramide for symptoms associated with diabetic gastroparesis. Prior to the approval of GIMOTI, metoclopramide while being the only approved drug for gastroparesis in the U.S. was available in just oral and injectable formulations.
Penny Stocks & EVOK
EVOK has been red hot among penny stocks lately. Responsible for trending actively with investors is the company’s developments in regards to its GIMOTI nasal spray. The nasal spray has proved to be a huge booster to shares of the company. Each new development of the spray from its approval to the Texas Medicaid Preferred Drug List to the latest market exclusivity had the stock soaring high.
While investors have been in good spirits lately, only time will tell if the novel nasal treatment will continue to boost shares further.
EVOK’s Path to Recovery
As per the latest financials and company reports, EVOK is well on its way to recovery from the hit caused by the pandemic. The company saw a surge in sales and increased face-to-face meetings with healthcare professionals in the ending quarter of 2021, and has continued positive momentum into 2022. The company said that with the positive trends for future revenue indicators for GIMOTI, it plans on employing more strategies to ensure higher reach.
Conclusion
While EVOK may be under corrections right now but the company expects much-improved growth in 2022 with the continued reach expansion of the nasal spray.
